FAQ: Government Initiates Changes In The Energy Industry

December 13th, 2019

The government is taking action in the energy industry, but what are they and what does that mean for all the consumers?

Change in social funding – Social incentives such as the warm homes discount is now getting funded via taxation as appose to energy bills, allowing consumers to receive an electricity rebate of £12 for the next two years.

Revision on the Energy Companies Obligations

– This has allowed suppliers to contribute less towards green measures such cavity wall insulation, meaning a saving of up to £35 a year.

Pushing Electricity suppliers to cut costs

– In 2014, this will mean a one off saving of approximately £5.

Considering all of the above, this could mean a total saving of £53 less for your energy in 2014.

The “Big six”

Not all of the big 6 have confirmed their plans to pass on the savings to consumers as negotiations with the government are ongoing. We have listed the latest below:


EDF increased its prices by 3.9% as according to them, they have already accounted for any reductions, meaning their rise was actually less than half compared to other energy suppliers. They have agreed to also pass on the £12 electricity rebate.


E.on too has confirmed to pass on the £12 electricity rebate and they have increased their prices on dual energy tariffs by 3.7%.


Npower previously increased prices by the highest rate but then followed suit to decrease the energy price after the government changes in the green levy. The £12 electricity rebate is due in the autumn season.

Scottish Power

As per the other suppliers, Scottish power will be offering the electricity rebate, but their decrease in prices will only apply to individuals in the variable tariff.


SSE will also be passing on the savings to customers on the variable and fixed rate tariff, which means a price reduction of around 4%.

I’m on a fixed tariff, can I benefit?

As per the above, some suppliers have decided not to pass on the benefits of a price reduction to customers on their fixed rate tariff. We look at some of the options below.

1) My tariff doesn’t have an exit penalty?

If your current tariff doesn’t have an exit penalty clause, then you should utilise this opportunity to compare and switch your current electricity and gas tariffs. This will lead to an instant saving without any disruptions in service.

2) My fixed tariff ends before the new discounts.

If your tariff ends before the discounts are rolled out, then switch to another fixed rate tariff which doesn’t have an exit fee. This means you can check again and switch if you find a better deal.

3) My tariff has an exit fee.

If your tariff has an exit fee then any savings made from switching might be offset. So it is important to work out how much the exit penalty is and how much you will save by switching. Obviously if it’s not financially viable then you should stay with your current supplier till the end of the contracted period, after which you can compare and switch.

4) My tariff is variable

If your tariff is variable then it’s still worth checking if bigger savings can be made and if you can protect your prices by going into a fixed rate tariff.

Note: It is important not rely on the government entirely to bring down your energy prices, by spending a few short minutes comparing energy tariffs at free price compare you can save £ 100s in minutes.

Compare and see how much you can save on your energy bills

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